Morgan Stanley has moved its Fortescue Metals Group recommendation to ‘underweight’ and said it no longer projects cash accumulation, debt reduction and increased dividends.

Hartley Research has maintained a ‘speculative buy’ on Emmerson Resources.

Deutsche Bank retains a ‘sell’ recommendation on Newcrest Mining.

Currencies

Speculators increased bullish bets on the US dollar in the latest week to their highest in nearly four months, according to data from the Commodity Futures Trading Commission released on Friday.

The Fed's next policy meeting is next Tuesday and Wednesday in the US, June 17-18.

Benchmark 10-year US Treasury notes were last down 4/32 in price to yield 2.6 per cent, pressured slightly by a rise in UK gilts yields and on expectations of an earlier-than-expected Fed rate hike.

Commodities

Crude oil prices rose to new nine-month highs on Friday as concerns persisted that an insurgency in Iraq could disrupt oil exports from the second-largest OPEC producer.

The International Energy Agency played down fears over the possible loss of oil exports from Iraq in its monthly Oil Market Report, which was released on Friday.

Palladium tumbled to a one-month low on Friday, extending its biggest drop in nearly a year in the previous session, as investors awaited confirmation that South Africa's longest mining strike would end soon.

United States

US stocks edged up on Friday, boosted by bullish news from the tech sector, but major indexes fell for the week as unrest in Iraq kept investors on edge.

Intel shares jumped nearly 7 per cent to $US29.87 a day after the Dow component raised its full-year revenue outlook, citing stronger-than-expected demand for personal computers used by businesses.

OpenTable popped 48.3 per cent to $US104.48 in heavy trading after Priceline Group said it would buy the company for $US2.6 billion. Priceline fell 3 per cent to $US1189.30.

For the week, the Dow was down 0.9 per cent, the S&P fell 0.7 per cent and the Nasdaq was down 0.25 per cent.

Europe

Major European stock indexes ended lower on Friday, with British equities slipping on the possibility of an early rate hike and travel stocks hurt by concern the Iraq conflict will raise oil prices.

A Reuters poll of economists on Friday suggested the Bank of England’s first interest rate rise will come in the first three months of next year.

What happened on Friday

The benchmark S&P/ASX 200 Index and the All Ordinaries Index both lost 1.1 per cent over the past week to two-month lows of 5405.1 points and 5383.7 points, respectively.

Mining was the worst-performing sector for the week, down 2.6 per cent, as the spot price for iron ore, landed in China, lost another 2.8 per cent to its lowest value since September 2012 at $US91.50 a tonne.

Energy was the week’s best-performing sector, up 1.8 per cent, led by a 2.5 per cent rise in Australia’s biggest oil producer Woodside Petroleum to $42.79.